Soybean closes higher amid trade deal optimism

Soybean prices rose on Friday, amid optimism about the US-China trade talks, and about Beijing increasing its purchases of US farm goods.

Despite the uncertainty about Chinese demand under the recent interim trade agreement, President Trump said he expects to buy $50 billion of US farm goods, while the WH economic adviser Larry Kudlow said that Beijing will buy $40 billion worth of goods over two years.

President Trump said that he had a constructive phone with Chinese President Xi Jinping today on the trade talks between the two countries, and the two presidents praised the progress made on the trade file, adding that the two countries are intensifying their talks to set a date for signing the phase-one trade deal.

Soybean is one of the most valuable US farm good exported to China, as the US sells an estimated $12 billion annually of this commodity to China -before reaching a trade agreement.

Soybean futures (January delivery) rose by 0.4% to close at $9.28 a bushel, and hit an intraday high of $9.30 and a low of $9.24.